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Portal Software Hammered on Concerns About Slowing Growth

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Shares of

Portal Software


plummeted after analysts downgraded the stock based on forecasts for slowing growth.

Portal recently lost 61.7%, or $11.50, to $7.13 in


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trading. The shares have traded as low as $6.50 this morning, while the 52-week high is $86.

A day after the Internet billing software company posted third-quarter earnings,

Goldman Sachs

cut Portal to market outperform from recommended and said it expects "sluggish" sales from the company's North American markets in the next one or two quarters.

Prudential Securities

downgraded the company to accumulate from strong buy and slashed its price target on the company to $20 a share from $75. Prudential predicted increased risk for Portal as it tries to shift into the large carriers market.

Portal posted third-quarter earnings of $7 million, or 4 cents a share, compared with a loss of $1.7 million, or a penny a share, last year. Revenue for the quarter rose to $72 million, up sharply from $28.1 million last year. The company's quarterly earnings beat analysts' expectations by 2 cents.